US insurer Massachusetts Mutual Life launched a second iteration of its Catalyst Fund today with $100m that will go to companies with black founders and startups based in its home state.
The company debuted its $50m MM Catalyst Fund in early 2021. It targets areas such as healthcare equity, economic inclusion and climate-focused offerings. It has backed 16 startups including metal recycling technology provider Nth Cycle and millennial-focused insurance portal Surround.
“This new fund will build and expand upon the MM Catalyst Fund’s success – including our innovative, consultative approach that helps address the gaps and barriers to funding,” said Jason Allen, MassMutual’s portfolio manager of impact investments, in a statement announcing the latest fund.
“We look forward to investing in companies led by exceptional founders who are solving problems with compassion and conviction to generate positive, measurable social and environmental impact while addressing inequality in capital markets.”
Liz Roberts oversees the Catalyst Funds as MassMutual’s head of impact investments. The latest one will provide between $500,000 and $5m per round from seed to series B stage. The upper end is double the $2.5m limit set for its predecessor.
The second Catalyst Fund will also invest in companies with black, Latino or indigenous founders in tandem with MassMutual’s diversity-focused First Fund Initiative, which was expanded from $100m to $200m in October 2022.
Roberts said today: “As one of the first movers in this space, we are excited to continue supporting entrepreneurs in our home state of Massachusetts as well as expanding our focus to select investment opportunities in diverse-led businesses across the country.
“Importantly, we hope that our continued commitment and investments in diverse and overlooked companies will inspire other firms and institutions to follow suit so we can collectively reduce structural barriers and advance racial equity.”
Photo courtesy of Massachussets Mutual Life
